Basically, the landlord still pays the water bill to the city, but gets reimbursed by the tenants.I wonder if someone could shed some light on this idea for me.

Nobody of county answer the phone so I asked to add one clause to the contract: if the bank couldn't close the home for the open permits, the seller will reimburse buyer's cost.

The electrician I pay directly, the plumber is paid by my prime contractor and I reimburse him.The project coordinator was involved on the first two projects for a flat rate $1800, distributed in two payments, first payment at the kick-off of the project and the second payment at project completion.  

Now whether you want to reimburse us a business decision but your not obligated

It is not clear from your question whether the seller reimbursed you for the prorated property taxes.

I'm not quitting my day job, and we have family health insurance coverage through my employer, but we still have fairly high out-of-pocket medical expenses, so I am leaning toward setting up a Section 105 Health Reimbursement Arrangement (HRA) in our LLC to cover out-of-pocket medical expenses with pre-tax dollars.  

Out of a sense of fairness, I let her have the December rent to sort of reimburse her for that..... error.

Hi @Rich HupperTo answer your original question, you can convert to an S-Corp and possibly backdate the effective date to avoid SE tax.To save even more on tax you can employ other strategies such has hiring kids, augusta loophole, revenue stream separation, section 105 medical expenses reimbursement, etc....There are a lot of possibilities to save.

If you are reimbursing him for materials, make sure to get a copies of the receipts and keep them in your records.

According to Illinois law, a purchaser is reimbursed the price they paid when there is a sale in error under Section 21-315 which states:Sec. 21-315.